January 30, 2013 at 5:54 p.m.

Gov't should scrap its takeover bid for the city

Gov't should scrap its takeover bid for the city
Gov't should scrap its takeover bid for the city

By Dennis Tucker, guest columnist- | Comments: 0 | Leave a comment

Lately there has been a lot of discussion about the growing economic challenges facing Bermuda.

Today, too many Bermudians are worried about job security and providing for their families. The rise in unemployment continues to climb and good paying jobs are becoming scarce across the island.

This economic crisis has also impacted the Government.

In the past two years, Bermuda's national debt has nearly doubled, to more than a half billion dollars - $680 million.

At this rate, Bermuda's national debt could top one billion dollars by 2012. That amounts to nearly $15,000 for every man woman and child in Bermuda, and more than $60,000 for a family of four.

Government monies that are available to reduce the national debt or applied right here in Bermuda on solving critical problems such as the education crisis, housing shortages and security shortcomings are consistently being paid out to foreign consultants and that money rarely comes back to benefit Bermudians and our economy.

These challenges are daunting, and government is struggling to balance its budget.

The new Auditor General herself stated recently that the government's current challenges include a "weakening cash position, as evidenced by a substantial bank overdraft, expenditures significantly outstripping revenues, increasing long-term debt and, by extension, a growing deficit and public debt".

At the same time that Government struggles, however, the Corporation of Hamilton continues to thrive and demonstrate sound fiscal management.

During a recent public town hall meeting, the Corporation of Hamilton presented the community with the state of the city's finances and reported that the Corporation has managed taxpayers' money effectively and responsibly.

The city's property portfolio, which we all use and enjoy, is well managed and this ensures that the City remains a vibrant place to live, work and visit.

City is debt free

We continually are working on city projects and upgrades to improve the daily lives of the City of Hamilton community.

We were very proud to announce that the city is debt free and has been for more than 15 years for all of its operational purposes. And our financial affairs are audited every year by independent auditors, and without fail the reports are clean and unqualified.

Additionally, it is worth noting that for the first time in Corporation history, the new team at City Hall has made all of the city's financial statements and presentations public; we have opened our board meetings and town halls to the public and to the media.

The people of the City of Hamilton deserve to know how taxpayer money is being spent and we demonstrate the good works that are being developed to improve the lives of all city residents.

Given the financial strength of the Corporation of Hamilton, and the many budget challenges that the Government faces, it is curious that Government has decided to take steps to take over both the Corporations of Hamilton and St. Georges.

Even more concerning are reports that, faced with mounting national debt, the Government has decided to pay $800,000 in taxpayer dollars to two consulting firms (one from the U.S.) to help them in their takeover efforts. You may wonder about the appropriateness of foreign consultants deciding the fate of a uniquely Bermudian city.

It appears that Government looks to take advantage of the Corporation's fiscal strength - it can be likened to using Hamilton to pay off the Government's massive credit card bill.

However, with all of the challenges that Bermuda is facing right now, the government should prioritize their actions and deal with other critical issues in addition to the rise in unemployment, like improving education and reducing crime that has plagued the island.

The Corporation of Hamilton has a strong record of fiscal responsibility and managing the taxpayers' money in an effective manner.

Given the daunting budget shortfall that Government faces, along with the many challenges facing Bermuda that Government must deal with, the taxpayers' money can be better served than on a risky and expensive takeover scheme.

DENNIS TUCKER is a Councillor for the City of Hamilton and Chairman of its Finance Committee.

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